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Old 07-30-2019, 03:34 PM
 
Location: Casa Grande, AZ (May 08)
1,707 posts, read 4,318,246 times
Reputation: 1448

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Quote:
Originally Posted by Nepenthe View Post
Interesting. Is the house you sold close enough where you can go check it out yourself? I only moved about five and a half miles away, so I figure I'll probably stop by and let myself in with their app and see what they did (almost certainly only paint) in a few days.

Actually its only 2 miles away. But, I don't need to....they did just post the pictures.....they did nothing to the home except clean the carpets and a deep cleaning from what I see.

Of course they have an excellent photographer that makes it show really well online.....don't get me wrong....the house was in great shape and only 11 years old....but it was not perfection.

I ll watch what happens....it will probably sell quickly...our market is hot. That is probably why they were willing to only charge me 5.5% for my fee to them as they suspect it will sell quickly.

If it wasn't against the rules I would post the link....
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Old 08-04-2019, 08:28 PM
 
Location: Casa Grande, AZ (May 08)
1,707 posts, read 4,318,246 times
Reputation: 1448
So - quick update. My old house went pending already. On the market less than 5 days with only the carpets cleaned. Of course I don't know the final price yet and will never know what kind of seller contributions were involved.
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Old 08-05-2019, 04:36 PM
 
Location: Keller, TX
5,658 posts, read 6,244,468 times
Reputation: 4111
Wow, that is quick.

They listed my old house today, also right at $10K more than they paid me. They're not going to get that.

Surprisingly, it doesn't even look like they did paint. I was going to stop by and use their app to let myself in to see what they did but it looks a lot like they did almost nothing, so I probably won't bother. Although I would like to give the plants in the garden some water...

I'm thinking I'm in the clear as far as Open Door trying to send a bill after closing for work (I was skeptical of that claim from my brother's wife's friend anyway).
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Old 08-06-2019, 05:49 AM
 
51,579 posts, read 25,500,783 times
Reputation: 37745
One of our neighbors just sold through Open Door. They were satisfied with the offer and pleased with the experience.

It hasn't been listed, so don't know price, but couldn't be much more than they bought it for as the comps wouldn't support it.

Perhaps the 6% commission is where they make their money.
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Old 08-06-2019, 05:53 AM
 
Location: Cary, NC
43,020 posts, read 76,529,724 times
Reputation: 45328
Quote:
Originally Posted by GotHereQuickAsICould View Post
One of our neighbors just sold through Open Door. They were satisfied with the offer and pleased with the experience.

It hasn't been listed, so don't know price, but couldn't be much more than they bought it for as the comps wouldn't support it.

Perhaps the 6% commission is where they make their money.

Open Door does not make money. They are not close to profitable.
Individual consumers may do OK, but the business model is High Cash Burn.
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Old 08-06-2019, 08:02 AM
 
Location: Boston, MA
5,264 posts, read 3,130,643 times
Reputation: 6894
That's true of just about every startup, so there's really nothing to report there. It took Amazon, what, 6 years to turn a consistent profit? (they did have one profitable quarter in the middle there).

At the end of the day there are people like me and the others upstream who see the value to the proposition. After doing the math, we came out ahead on the deal, and it allowed us to move into the new house when we wanted without worrying about when the old house would sell, or what it would sell for.
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Old 08-06-2019, 08:04 AM
 
Location: Cary, NC
43,020 posts, read 76,529,724 times
Reputation: 45328
Quote:
Originally Posted by BoSox 15 View Post
That's true of just about every startup, so there's really nothing to report there. It took Amazon, what, 6 years to turn a consistent profit? (they did have one profitable quarter in the middle there).

At the end of the day there are people like me and the others upstream who see the value to the proposition. After doing the math, we came out ahead on the deal, and it allowed us to move into the new house when we wanted without worrying about when the old house would sell, or what it would sell for.

Amazon is a great comparison.
They would not be viable without AWS which provides the vast amount of their product.

And, to get to a grocery chain level of profitability, they had to burn tons of cash taking out established businesses to get market share to set pricing.

Ruinous pricing is common on the path to approaching monopoly. If Opendoor is not profitable now, house by house, what is the play? Raise prices or make it up in volume?
Or, to go the Zillow route and offer mortgages, which is a significant conflict with consumer interests? Z now expects to make as much on lending as they do in buying and selling.
It would seem to me that it would be easy for a "disruptor" to compete and be profitable, considering the common opinion that there is so much fat in real estate conveyance.
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Old 08-06-2019, 08:44 AM
 
Location: Research Triangle Area, NC
6,311 posts, read 5,402,249 times
Reputation: 9916
I got a call from the "BIC" of local Opendoor brokerage yesterday after they reviewed my responses to the survey they sent me after yet another transaction I was working on with them fell apart because of the lack of consumer-friendliness on their part (on the buy-side). This was very surprising and admittedly encouraging.

I actually had a good 15 minute conversation with him. He even acknowledged my point that if an individual agent had said/suggested many of the things that their automated system sends out to buyers.....they'd be in a significant ethics violation and probably punished.

When talking with an actual live person with OD...the experience is pleasant and professional; more so than it has been with plenty of other traditional agents. The problem is that their system is just not AT ALL consumer friendly for the buyer. IMO that's the biggest reason why their average DOM lags the market by significant margins overall (along with the over-pricing obviously)

Again; their value to the seller-consumer in taking a financial hit on the sale of their house for the sake of convenience will make room for them in the market on that side of the transaction. But they fail MISERABLY on the buyer-side of the transaction and that's where they are losing all of their money. They are aware of this and seem to be reaching out to traditional agents more and more for feedback and cooperation. Should be interesting to see how this plays out in the long-run.
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Old 08-06-2019, 09:23 AM
 
Location: Raleigh NC
25,118 posts, read 16,076,346 times
Reputation: 14408
Quote:
Originally Posted by TarHeelNick View Post

I actually had a good 15 minute conversation with him. He even acknowledged my point that if an individual agent had said/suggested many of the things that their automated system sends out to buyers.....they'd be in a significant ethics violation and probably punished.
they are a real estate brokerage, yes? Licensed in the state of NC (among others)? Subject to the same rules of NC and NAR that we are?

When they do not obtain a WWREA at first significant contact (arguably that this is NLT the moment they give you a code to enter a home), that's a violation.

When they do not inquire "Do you have an Exclusive Buyer AGency Agreement with someone else?" that's a violation. Heck, they DO ask if you have an agent, and I've had folks say yes. Certainly in their autoprompts, this could tell their computer to ask about agency. They do not the last time I looked.

When they later ask someone who indicated they had an agent "Ready to make an offer? Click here to get started!" that's another violation.
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Old 08-06-2019, 10:19 AM
 
Location: Morrisville, NC
9,122 posts, read 14,666,383 times
Reputation: 8973
Anyone buying with Opendoor, definitely get a home inspection. They seem to be getting worse and worse. In my area, they stopped getting an actual home inspection when they bought the house a little over a year ago. They started using their guys, who previously just looked at finishes to check a little more stuff with the house .

A home of theirs I inspected the other day had multiple pretty severe issues that were not obvious to a layperson but would be found by any competent home inspector. Did one a couple months ago where someone used a saddle tap valve for the icemaker line, it shocker, it couldn’t be shut off. So, when the people moved out they pulled the line through the floor into the crawl, kinked it and placed a cinder block on it. The valve also was leaking at a small drip, had a tray placed under it and a frog was living in the tray.

I believe to save money they are doing as little as possible knowing not everyone will get an inspection and they will save money that way.
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